Capital Square Fully Subscribes DST Offering for Active Adult Build-For-Rent Community in Texas

SAN ANTONIO, Dec. 15, 2025 /PRNewswire/ -- Capital Square, a leading sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, announced today that its offering, CS1031 Texas Active Adult Living I, DST, has been fully subscribed. The Regulation D private placement for Woodland Cottages, a 62-unit, build-for-rent (BFR) active adult community in the San Antonio suburb of Fredericksburg, Texas, raised $34 million in equity from accredited investors. Capital Square acquired the property on behalf of the DST in August 2025.

"Capital Square invests in rental housing, a necessity for millions of people. History demonstrates that housing investments are safe and provide inflation protection," said Louis Rogers, founder and co-chief executive officer of Capital Square.¹ "Housing assets come in many types, from Class A and B multifamily, build-for-rent home communities, manufactured housing communities (MHC) and senior housing options. Capital Square aims to provide a diversified platform of housing investments to help investors and their advisors diversify. The active adult class of housing is very popular due to the aging of America and lack of quality rental housing options for the growing number of healthy adults."

Located at 161 Friendship Lane, Woodland Cottages features ADA-compliant rental homes tailored for active adults. The community has 20 one-bedroom residences, averaging 899 square feet, and 42 two-bedroom residences, averaging 1,355 square feet. Each home includes open-concept layouts with zero-threshold showers and other aging-in-place features. Community amenities include a 6,000-square-foot clubhouse, swimming pool, fitness center and dedicated resident concierge to foster a vibrant and socially connected lifestyle.

Situated in Texas Hill Country, Fredericksburg is within one of the fastest-growing regions in the nation. Within a 50-mile radius, the area has had 18.8% population growth over the past five years, driven by its strong appeal among retirees and lifestyle-oriented residents. Rents in Fredericksburg have increased by 12.2% annually, among the highest growth rates in the U.S. Additionally, in 2025, Fredericksburg was recognized as a "Top Retirement Dream Area" by Scout Report.

"The successful capitalization of this offering reflects the strength of our investor relationships and the market's appetite for high-quality, purpose-built rental communities," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "Active adult housing remains one of the most resilient and undersupplied segments of the housing market. The quick completion of this offering demonstrates strong interest in this investment strategy."

Home to over 80 wineries, Fredericksburg ranks as the second most visited wine tourism destination in the nation, just behind Napa Valley, Eater reported in 2025. Situated 80 miles west of Austin and 70 miles north of San Antonio, Fredericksburg is also renowned for its Main Street historic district. The area has an unemployment rate of 2.7% as of April 2025, a full 1.0% below Texas' 3.7% and 1.2% below the national rate of 3.9%, reports Colliers. More than one million people visit Fredericksburg annually, generating $175 million in tourism revenue and supporting around 1,200 local jobs, according to the 2025 Fredericksburg, TX Convention & Visitors Bureau Economic Impact Report.

Since its founding in 2012, Capital Square has acquired more than 175 real estate assets on behalf of over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with others seeking stable cash flow and capital appreciation.

About Capital Square
Capital Square is a vertically integrated, national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume. Its mixed-use development projects total over 2,000 apartment units with a total development value in excess of $800 million, and Capital Square Living, the firm's property management division, oversees more than 13,000 apartments across multiple states. Capital Square's related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. The company has been recognized by Inc. 5000 as one of the fastest-growing private companies in the nation for nine consecutive years. Learn more at CapitalSq.com.

Source: 1. "Real Estate as an Inflation Hedge: New Evidence from an International Analysis," The North American Journal of Economics and Finance, Volume 80, 2025.

Disclosure
Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

SOURCE Capital Square